Everyone, not only seniors but mothers, fathers, even single men and women need to understand how to designate someone to make financial decisions for them, as well as the reasons why this is so important.

You just don't know what tomorrow might bring. I have seen senior citizens and young mothers alike, become suddenly ill or otherwise incapacitated. I realize that everyone thinks it can't or won't happen to them, but I have seen it happen to many people who thought exactly the same thing.

It is important to realize that if you were unable to make financial decisions for yourself your rent or mortgage could go unpaid, your home be foreclosed on, your family evicted. Your belongings could be confiscated, and even your cherished possessions, such as pictures and mementos, destroyed forever. Aside from this, if you somehow were able to keep your housing payments there are other problems that could arise, such as your electricity or heat could be turned off in the dead of winter. If you have children they could be placed in protective custody, and if you have savings, without the proper care, all of your assets could be quickly eaten up.

With all of that said I would like to encourage everyone that has anything that they hold near and dear to them, to designate someone they trust, to make financial
and other major decisions for them, in the event they should become incapacitated.

The first step is to select the person or people who you would want to be in charge. You will need to talk with them, and gain their permission to draw up a legal document, giving them the right to handle your finances, deposit and withdraw funds, pay your debts, take care of your family etc...
You will also want to make the person or people you have selected aware of what assets you have, what debts and bills will need to be paid, where your financial documents will be kept, what income you have and when it comes in, and any other pertinent information.

Type a statement that details who is to be in charge of what, where your children will be placed, what is to be done with your home, possessions and other assets, and who is allowed to do that. Be as specific as possible as to what you want to see happen.

Have your statement looked over by an attorney, if at all possible. While an attorney may charge you a small fee, there may also be legal assistance available to you, to help you plan for this type of situation, if you are a senior citizen.
It is well worth the small expense of an attorney's input, considering all that you stand to lose if something happens to you and there is no-one to oversee your finances.

Lastly, make sure to have your statement notarized. This will make it a legally witnessed, binding document. Both you and the person you are putting in charge in the event that you are unable to make your own financial decisions will need to be present to sign the document in front of the notary.

Taking these precautions now may seem like an unnecessary bother, but it may well be the best step to avoiding disaster later.

Learn more about this author, Randa Morris.
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